Memory chips have become a key component not only in consumer electronics such as smartphones and laptops, but especially in artificial intelligence data centers and the servers installed in these facilities. While tens of billions of dollars are being invested in building AI infrastructure, demand for memory chips is skyrocketing and causing unprecedented price increases for these components.
Sassine Ghazi, CEO of Synopsys, which produces key semiconductor design tools, confirmed in an interview with CNBC that the chip shortage will continue through 2026 and 2027. According to Ghazi, most memory chips from the largest manufacturers are going directly into AI infrastructure, while other markets are suffering from a lack of capacity.
Samsung, SK Hynix, and Micron are the largest memory chip manufacturers in the world. Although these companies are planning to expand production, it takes at least two years for new manufacturing capacity to become operational, which is one of the main reasons why the shortage will continue.
Golden times for memory manufacturers
Memory chip prices have historically fluctuated in cycles of shortages and surpluses, which determined component prices. However, some analysts are describing the current trend as a "supercycle". "This is a golden age for memory chip manufacturers," Ghazi said. South Korean manufacturers Samsung and SK Hynix acknowledge that they cannot keep pace with rapidly growing demand for their products, driven by the artificial intelligence boom. The companies warn that limited cleanroom space is a key factor hindering production expansion across the industry.
Winston Cheng, CFO of Lenovo, the world's largest computer manufacturer, confirmed in an interview that "we will see memory chip prices rise" because demand is high and supply is insufficient.
Electronics price increases are on the horizon
The jump in memory chip prices means that consumer electronics manufacturers will have to consider raising the prices of their products. Chinese technology giant Xiaomi, one of the world's largest smartphone manufacturers, said last year that it expected mobile phone prices to rise in 2026. However, Ghazi of Synopsys warned that prices are already rising.
Lenovo's Cheng said that given the high demand for memory chips, he is "very confident that the cycle will be such that we will be able to pass the costs on" to customers. Lenovo has a globally diversified supply chain with 30 manufacturing facilities around the world, which could help mitigate some of the risks associated with the memory chip shortage.
However, Cheng noted that the consumer device segment is "also suffering a little... in terms of price demand." He added that computer and laptop users are still transitioning to Windows 11, Microsoft's operating system released in 2021. "I think that replacement cycle is very real," Cheng said. Nevertheless, price increases would "start affecting the lower-end segment first" in the electronics market.
Extreme demand for AI chips
Demand is particularly high for high-bandwidth memory, which is essential for AI applications. Ghazi explained that most memory chips from leading manufacturers are going directly into AI infrastructure, while "many other products need memory, so those other markets are starving today because there is no capacity left for them."
Global memory chip production leaders Samsung and SK Hynix acknowledge that they are facing "extreme" demand driven by artificial intelligence and are unable to meet it. This situation is putting pressure on the entire industry and affecting the availability of components for mainstream consumer electronics, including televisions and smartphones, as well as the automotive industry.
